Tuggl.com announces nonprofit winners...

Congrats to Matt Buchanan and the folks at Tuggl.com for this successful launch of a nice promotion for their work.

"Announcing the tuggl.com Donations Contest winners for the month of May! A big THANK YOU to all the nonprofit organizations in the Denver/Boulder area who recognized companies, and we look forward to doing it all again next month."

tuggl connects you with local businesses committed to making the world a better place. Now you can find the local products or services you need and support causes that speak to your heart.

Turning Your Brand into Dollars

Cone Study on Cause Marketing challenges Nonprofits to Explore Ways to Monetize their Brand

Thanks to The NonProfit Times for citing this powerful new study on cause marketing from Cone. 

One of our most valuable assets that we have as nonprofits is our brand; learning how to capitalize on that brand through cause marketing partnerships and licensing can be a phenomenal way to increase your unrestricted revenues... even in the current market.

Donors ... Loyalty to brand a thing of the past

Compared to the average adult (79 percent), Millennials (88 percent) are more likely to switch from one brand to another, given similar price and quality, if the other is associated with a good cause, according to a recent survey. More than half of the Millennials surveyed bought a cause-related product or service in the past year, compared to 38 percent for all adults.

Cone LLC, a Boston-based brand consultancy specializing in cause marketing, marked its 25th anniversary with the recent release of the 2008 Cone Cause Evolution Study and the Cone/Duke University Behavioral Cause Study with Duke’s Fuqua School of Business.

The percentages for Millennials (those ages 18-24) were higher than the average adult in nearly every category. More than 40 percent said they prefer the message that a percentage of the purchase of each product goes to support the nonprofit, compared to 28 percent for all adults. Also, 45 percent are more likely to donate money to the related charity compared with 36 percent for all adults; 36 percent are more likely to participate in the charity’s programs and events versus 29 percent for all adults, and 32 percent are more likely to volunteer, compared with 23 percent.

The overall 79 percent who would be more likely to switch is up from 66 percent in a similar study 15 years ago.

The study also found at least a modest increase in the actual purchase of four product categories -- shampoo, toothpaste, chips and light bulbs -- as a function of the cause message, as well as a high brand recall. In the toothpaste category, 64 percent of participants who saw the cause message chose the target brand versus 50 percent who viewed the control advertisement. For shampoo, 47 percent of those who saw the cause-related message chose the brand compared to 27 percent who saw a generic message.

More than half of those surveyed said companies should maintain their level of financial support of social and environmental causes and nonprofits, despite the economic downturn. More than a quarter of respondents expect corporations to give more during difficult times.

Among issues deemed “very important” by consumers were education (55 percent), access to clean water (55 percent), hunger (54 percent), health and disease (52 percent), environment (52 percent), economic development (51 percent), and disaster relief (46 percent).

Almost two out of five people have purchased a product associated with a cause in the last 12 months, compared with one out of five people 15 years ago. In 1993, two-thirds of respondents said it’s acceptable for companies to involve a cause in their marketing, a figure that’s up to 85 percent this year.

Cause marketing doesn’t stop at just products. Among those surveyed, nearly a third said it was “very important” for employers to provide matching grants, paid time off to volunteer and company-sponsored volunteer days. Prior to purchasing a cause-related product, 80 percent of respondents said it’s important that companies have a significant impact on the cause and 75 percent consider whether they stand to make a difference themselves.

The belief that companies should prioritize support of issues that affect quality of life in local communities was down slightly, from 55 percent in 1993 to 49 percent. Meanwhile, prioritizing quality of life nationally went from 30 percent in 1993 to 36 percent this year, while the quality of life globally came in at 15 percent this year, up from 10 percent 15 years ago.

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Dell to Expand Size, Focus of Its Giving

Dell to Expand Size, Focus of Its Giving

In a formal statement on its Web site, the computer giant Dell announced it will expand its global philanthropic efforts.

Thanks to the Foundation Center for the following summary:

Dell to Expand Size, Focus of Its Giving
Dell has announced it will increase its corporate philanthropy to 1 percent of pre-tax profits by 2010, providing additional support for education and technology initiatives particularly in emerging countries.
While maintaining its commitment to company and employee support of nonprofit organizations in communities where Dell operates, the company will focus its corporate gifts in countries such as Brazil, Russia, India, and China, where the majority of the next billion Internet users will live. According to IDC research, the Asia-Pacific region — excluding Japan — along with other emerging areas such as Latin America, Eastern Europe, Africa, and the Middle East will account for about 59 percent of global PC volume by 2012, up from 48 percent in 2007. "Our new giving strategy is rightly focused on equipping youth in these areas, and around the world, for success," said Michael Dell, chairman and CEO of the Texas-based company.
Dell recently launched a global initiative, Dell YouthConnect, to direct corporate giving to organizations in emerging countries that promote education and incorporate math, science, literacy, and/or technology skills development for children and youth up to age 17. In its current fiscal year, Dell will direct increased giving to India, and has issued a request for proposals to nonprofit and nongovernmental organizations in Indian cities where it has a presence.
"Corporate giving, when conceived and structured like Dell's global YouthConnect initiative, creates a win-win scenario for business and the public," said Charles Moore, executive director of the Committee Encouraging Corporate Philanthropy. "Dell's increased giving and focus on...education and digital inclusion will have a meaningful and positive impact, particularly in emerging countries."

For the official statement from Dell, visit:
“Dell Expands Global Philanthropic Efforts.” Dell Press Release 9/23/08.

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Consumer Behavior Study Confirms Cause-Related Marketing Can Exponentially Increase Sales

Cone releases a new Consumer Behavior Study that Confirms Cause-Related Marketing Can Exponentially Increase Sales

Cone releases a new Consumer Behavior Study that Confirms Cause-Related Marketing Can Exponentially Increase Sales:

Cone/Duke University Study Also Reveals Consumers Spend Twice as Long Viewing Cause-Related Advertisments
http://www.csrwire.com/News/13326.html
(CSRwire) Boston, MA - (October 1, 2008) - As the term "cause-related marketing" reaches its 25th anniversary and a sea of pink ribbons washes over the U.S. this month, a new consumer behavior study confirms that cause-related marketing can exponentially increase sales, in one case as much as 74 percent, resulting in millions of dollars in potential revenue for brands. The 2008 Cone/Duke University Behavioral Cause Study, released today by Cone and Duke University's Fuqua School of Business, validates for the first time that cause-related marketing can significantly drive actual consumer choice.

During the first phase of the study at Duke University, 182 participants evaluated a new regional magazine and were exposed to either a cause-related or generic corporate advertisement for one of four focus brands. Afterward, they entered a mock convenience store with nearly 150 SKUs and were given real money to purchase a product in each of the four categories. Results revealed:

Substantial cause-related sales lift for two of the four consumer packaged goods categories tested:

•74% increase in actual purchase for a shampoo brand when associated with a cause
•(47% of participants who saw the cause-related message chose the brand while only 27% of those who saw the generic corporate advertisement chose the brand)
•28% increase in actual purchase for a toothpaste brand when associated with a cause
•(64% of participants who saw the cause message chose the target brand vs. 50% who viewed the generic corporate advertisement)
•Modest increases in the other two product categories tested (chips and light bulbs) – Qualitative consumer responses showed that the issue, the nonprofit and the inherent nature of products were key factors in making cause-related purchasing decisions and helped explain why movement in these categories was not significant.

In the second phase of the research, Cone and Duke validated the sales increases for shampoo and toothpaste by replicating the study online among a nationally projectable sample of more than 1,000 adults. The results revealed that participants spent nearly twice as long reviewing cause-related ads versus the general corporate advertisements. This resulted in a sales increase (19 percent) similar to the lab study for the target toothpaste brand. And although the shampoo brand increased only by a modest 5 percent, sales among its target audience of women increased by nearly 14 percent.

"It's much easier to make a purchase by clicking a button than it is to pick up and experience a brand in the richer store environment; the results of our study likely lie between the impulsive online shopper and the deliberate in-store shopper," says Gavan Fitzsimons, Duke marketing professor and lead researcher on the study. "One thing we know for sure - consumers are paying more attention to cause messages, and as a result, are more likely to purchase. This is clearly great news for brand managers, as every percentage increase can translate to millions of dollars in revenue."

2008 Cone Cause Evolution Study

Cone first began measuring the attitudes of Americans 15 years ago, and today, expectations of companies continue to grow. To complement the behavioral study, Cone conducted the 2008 Cause Evolution Study, to better identify what drove substantial product sales for only two of the four brands. The results found that consumers consider the following factors to be important when deciding to support a company's cause efforts:

•84% want to select their own cause

•83% say personal relevance is key

•80% believe the specific nonprofit associated with the campaign matters

•77% say practical incentives for involvement, such as saving money or time, are important

•65% find emotional incentives for involvement, such as it making them feel good or alleviating shopping guilt, important

"The findings of the 2008 Cone Cause Evolution Survey help reinforce why two of the categories in our behavioral research did not show significant increases in sales. Consumers want to feel a connection to the issue and the nonprofit while fulfilling their personal needs," says Alison DaSilva, executive vice president, Knowledge Leadership and Insights, Cone. "While this is a tall order for companies, it provides great opportunity for continued innovation and business growth."

Consumers Set Bar High for Companies, Even During Poor Economic Climate

The 2008 Cone Cause Evolution Study also revealed that consumers continue to have high philanthropic expectations for companies struggling amid the current economic crisis. More than half (52 percent) of Americans feel companies should maintain their level of financial support of causes and nonprofit organizations. Another quarter (26 percent) expects companies to give even more.

Fortunately for marketers, consumers are also more receptive to cause messages than ever before. They will reward companies that give back both with their goodwill and their wallets:

•85% of Americans say they have a more positive image of a product or company when it supports a cause they care about (remains unchanged from 1993)
85% feel it is acceptable for companies to involve a cause in their marketing (compared to 66% in 1993)

•79% say they would be likely to switch from one brand to another, when price and quality are about equal, if the other brand is associated with a good cause (compared to 66% in 1993)

•38% percent have bought a product associated with a cause in the last 12 months (compared to 20% in 1993)

Priority Issues for Business and Society
The leading issues that Americans want companies to address in their cause programs are consistent with growing domestic and global needs. These are also issues in which companies can use their business scale and resources to have the greatest impact. The issues include:

•Education – 80%

•Economic development (i.e.: job creation, income generation, wealth accumulation) – 80%

•Health and disease – 79%

•Access to clean water – 79%

•Environment – 77%

•Disaster relief – 77%

•Hunger – 77%


Americans also acknowledge that to truly drive change, there needs to be widespread collaboration among sectors. Nearly nine in 10 Americans (89 percent) say it is important that business, government and nonprofits collaborate to solve pressing social and environmental issues.

Communication Disconnect

Almost uniformly (91 percent), Americans believe companies should tell them how they are supporting causes, but many do not feel they are getting sufficient information. Only 58 percent of Americans believe companies are providing enough details about their cause efforts. Half also think the government or other third parties should regulate cause marketing by companies.

"Progressive organizations are moving away from 'assembly-line cause' - simply picking an issue and a partner off the shelf - as they evaluate how societal needs and business growth are intrinsically linked," says DaSilva. "In today's highly transparent society, consumers are seeking more information about the details of the program, the issue and the impact that they and the company are having. Companies must not only answer, 'What do you stand for?' but also 'What do you do?'"

For a copy of the complete report, "Past. Present. Future. The 25th Anniversary of Cause Branding," please contact skerkian@coneinc.com or visit www.coneinc.com/research.

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3 rules to guide philanthropic companies

A nice article in CFO Magazine called "Best Intentions" offers three rules for "those on the cutting edge of what is now being called 'good corporate citizenship' (to) apply three rules to get the best out of their philanthropy:"

1. be good with what you're good at;
2. stick close to what matters to your business;
3. don't be afraid of turning a profit by doing good."

Read the full article here:
http://www.cfo.com/article.cfm/11954911/c_11991481?f=home_magazine

Ten Basic Responsibilities of Nonprofit Boards

While researching the topic of board responsibilities for fundraising and financial management, I came across this page at the New Nonprofit Nexus, which includes a reprint from Ten Basic Responsibilities of Nonprofit Boards by
Richard T. Ingram.

I encourage you to review the full list here:
http://www.mnaonline.org/bookstore_images/ACFBE0.jpg

The book, a publication of BoardSource, states that the following are the Ten Basic Responsibilities of Nonprofit Boards (each is detailed further here):

1. Determine the organization’s mission and purpose.
   
2. Select the chief executive.
   
3. Provide proper financial oversight.
   
4. Ensure adequate resources.
   
5. Ensure legal and ethical integrity and maintain accountability.
   
6. Ensure effective organizational planning.
   
7. Recruit and orient new board members and assess board performance.
   
8. Enhance the organization’s public standing.
   
9. Determine, monitor, and strengthen the organization’s programs and
   services.
   
10. Support the chief executive and assess his or her performance.

It seems to me that all boards get really excited about the first one, and most enjoy the second step as well. Then, regardless of size of board, they begin to stumble until they get to the eighth, at which point they give themselves the excuse of having a big special event that they believe achieves this goal as well as many of the others (particularly the fourth, which is rarely the case).

They then get excited again when it comes to the ninth and tenth points.

Why is it that the others are such a struggle? After all...

• Providing proper financial oversight is the core function of the board.
  
• Ensuring adequate resources is the most vital function of the board, in terms of sustaining the ongoing mission.
  
• Ensuring legal and ethical integrity and maintaining accountability goes hand-in-hand with providing proper financial oversight, and is something that ONLY the board can do.
  
• The board is likely far more qualified to ensure effective organizational planning than the staff (like it or not, non-profiteers generally lack the level of business sophistication and strategic thinking necessary for this step to be successful). Besides, the organizational plan should reflect the community's interests (which the board represents) rather than the internal motivations of the organizations (which the staff live and breathe).
  
• There is no way that staff can compete with board members when it comes to recruiting and orienting new board members and assessing board performance. This area can be an incredible chore, which is why it is generally neglected; but there is no better way to improve the performance of the organization.

I would welcome your thoughts, particularly if you are a member of a non-profit Board.
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What do you think? Please click the COMMENTS button below.

If you had Google's ear.... would you whisper or scream?

Over at Tactical Philanthropy, Sean Stannard-Stockton has taken a very difficult task onto his shoulders by asking the question:

What to Measure and Why in Philanthropy?

(Continued thanks to Phil Cubeta for pointing us to interesting things like this... does the man ever blink, let alone sleep?)

Sean's question comes as he works to prepare for a "meeting with someone from Google.org next week to talk about what kind of information I think they should make available about nonprofits in Google Finance and other ways that Google.com’s mission statement to “organizing the world’s information” can be directed at the Third Sector."

Here are my thoughts...

As we approach the elections, I am reminded of a similar question: What makes a good country?

Is it simply GDP growth? % of electorate who participate in elections? Average income? Average lifespan?

I think it can be very difficult to gauge a good non-profit organization. In fact, I think that we have a problem with the way that we gauge all organizations.

The over-reliance on financial measures for evaluating a for-profit company is a problem, as well. I am in the minority with this idea, but I do not believe that the purpose of a company is to make money. I believe that it is to provide a needed service or product to the community.

This is the case for non-profit and for-profit companies. Their distinction should be limited to tax designation.

Is it a profitable company a good company if it causes social ills? Is a company that provides social benefits a bad company if it operates at a deficit?

These are the larger questions that we must ask ourselves.

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What do you think? Please click the COMMENTS button below.

National Health Care Company, VHA Inc., Expands Corporate Citizenship Initiative, Signs Up 1,000 Employees for Annual Community Day

It looks like another corporation launched a big, public "hurrah" around the issue of volunteerism. These "days of caring" are seeming to become increasingly common, particularly for United Way-funded organizations that are frequently tapped for such projects (i.e. that are asked to make up something for a big donor's employees to do for six hours so that they feel validated in their support of the United Way).

I have mixed feelings about such programs. They try to maximize "bang for buck" in terms of public reaction to the company's support of the community. They are focused on the employees themselves getting the most out of the experience, not the people they are intended to help.

And yet, I am reminded of an article from PhilanthroMedia that I blogged previously, called "Volunteerism As a Lever to Promote City Revitalization."

It's a good read. And perhaps it's right -- perhaps this latest campaign is a good thing for Dallas as well as VHA.

DISCUSSION: What do you think of such corporate volunteer programs?

National Health Care Company, VHA Inc., Expands Corporate Citizenship Initiative, Signs Up 1,000 Employees for Annual Community Day

IRVING, TEXAS--(Marketwire - October 9, 2007) - Demonstrating a strong commitment to the environment and community, more than 1,000 employees of VHA Inc. and its family of companies -- Novation, Provista and Goodroe Healthcare Solutions -- joined forces with local, community-based organizations across the country today to volunteer their time for the company's annual Community Day. At least 500 Irving-based employees and 500 more from the company's 17 regional offices left their desks behind to make a positive difference in the communities where they live and work.

With the growing national call to 'think green,' some Irving-based employees are digging in on two environmental improvement projects: The Rock the River program from Keep Irving Beautiful, which includes walking the Irving waterways and collecting debris; and the Texas Trees program that involves planting and transplanting trees for a healthier community.

The focus on environmental projects and active community involvement is one part of a larger corporate citizenship effort at VHA that includes supporting earth-friendly practices as a way of creating communities that keep people healthy and safe. Just last week, VHA worked with its contracting services company, Novation, to secure discounted bulbs from GE Lighting and distributed them to employees, along with a pledge to switch at least one of their regular bulbs. The efforts, part of the ENERGY STAR® Change a Light Day campaign, resulted in more than 150 VHA employees pledging to change 1,400 light bulbs and an estimated energy savings of more than $35,000.

Local employees will tackle other projects around the community today ranging from painting, sorting clothing donations, landscaping and rejuvenating playground areas. Groups VHA is partnering with include: Buckner Children & Family Services, Dallas Heritage Village, Faith Christian School, Heart House Dallas, North Texas Food Bank and CC Young Memorial Home.

"Both VHA and its employees have made a commitment to the environment and to contributing to the communities in which we live and work," said Curt Nonomaque, VHA's president and CEO. "We believe that together, we can make a difference."

Since its inception in 2000, VHA's Community Day has generated at least 15,000 volunteer hours and more than $100,000 in donations to 80 charities. VHA's commitment to community extends beyond this annual event as well with an active volunteer program that enables employees to volunteer each month and then matches their time with a financial contribution.

To learn more about VHA's Corporate Citizenship efforts, visit www.vha.com.

About VHA Inc.

VHA Inc., based in Irving, Texas, is a national health care alliance that provides industry-leading supply chain management services and supports and promotes the formation of regional and national networks that help not-for-profit health care organizations improve their clinical and economic performance. With 17 offices across the U.S., VHA has a track record of proven results in serving more than 1,400 hospitals and more than 21,000 other health care providers nationwide.

Critics Say Bono's Business Practices Belie Africa Efforts - Philanthropy.com

The Chronicle of Philanthropy posts a very interesting article called, "Critics Say Bono's Business Practices Belie Africa Efforts." The article cites the apparent hypocrisy within Bono's efforts to increase tax-provided support to Africa on one hand while working to decrease his personal tax burden on the other.

For another perspective, GOOD Magazine put together this interesting video on U2's Bono, calledBono: A Brief History - From Rock Star to Philanthropist. See below.

Corporate Charity: Kroger Creates New Position To Strengthen Its Hunger Relief Efforts

Interesting news in the arena of corporate philanthropy...

Kroger Creates New Position To Strengthen Its Hunger Relief Efforts
Director of Retailer's Perishable Donations Partnership Links Stores With Local Food Banks To Get Fresh Food To Hungry People

CINCINNATI, Sept. 28 /PRNewswire-FirstCall/ -- As part of its continuing leadership in helping to feed hungry people in our communities, The Kroger Co. today announced Kathleen Wright has been named Director of the Company's Perishable Donations Partnership (PDP).

Kroger's Perishable Donations Partnership is a Company-wide project that will increase the number of stores in the Kroger family that donate safe, perishable food to America's Second Harvest food banks that have the capacity to safely handle and distribute fresh food.

Today, Kroger donates food valued at $45 million annually through its existing programs. These donations are primarily dry grocery products and can goods. In addition, approximately 300 stores in the Kroger family donate eight million pounds of perishable food annually to local food banks in Michigan, Ohio, Utah and Washington.

Under Wright's leadership, Kroger's Perishable Donations Partnership program will expand to include the Company's family of stores. Kroger's goal is to donate 50 million pounds of nutritious, fresh food to food banks across the country through this expanded PDP program.

"This is an exciting opportunity to bring even more food and hope to hungry people," said Lynn Marmer, Kroger's Group Vice President of Corporate Affairs and a member of the board of directors of America's Second Harvest. "This initiative not only increases the amount of fresh food Kroger donates, it will help improve the diets of individuals and families who depend on hunger relief programs by giving food banks access to a variety of nutritious meats, fruits and vegetables."

Ms. Wright brings 25 years of experience in the grocery business to her new role. During her career, she has held leadership roles in food safety and store operations. Most recently, Ms. Wright served as Director of Food Safety for Kroger's Fred Meyer Division.

Ms. Marmer said the dedication of store managers and associates throughout Kroger's network and their close working relationship with local food banks are the keys to expanding this program in the communities where Kroger's customers and associates live and work.

Kroger has helped lead the fight against hunger in the United States for more than 25 years. Through the Company's "Bringing Hope to the Table" campaign, a nation-wide that encourages customers to purchase participating items in stores to support America's Second Harvest and local food banks, Kroger and its family of stores have raised $6 million in cash and $2 million in food in the past two years. Kroger plans to expand the program in 2008. In addition to food and monetary donations, Kroger's hunger relief efforts include volunteerism, fundraising, and board leadership with local food banks.

"We appreciate working with our partners at local food banks and look forward to their continued leadership as we grow this important program with their help," Ms. Marmer said.

Great News for Non-Profits, from Google... but some Caveats

For the past few days, I've wanted to blog about the most recent news from Google, which is now offering free checkout services to non-profits (i.e. 100% of donations come to your organization) as well as an expanded YouTube for non-profits, including a non-profit. But as I gathered my thoughts, I came across this blog that does a fine job at explaining the upsides and potential risks of using these two new "boons" for the charitable sector:

Katya's Non-Profit Marketing Blog: "Tips for Google Checkout, YouTube freebies"

I am very thankful that Google is leading this charge towards a sensible for-profit/non-profit collaboration that enhances both entities' work. I have wanted this for some time, as I blogged about it here on February 18, 2007:

The Raiser's Razor: Open Letter to Venture Philanthropists

Thank you, Katya, for your excellent work.

DISCUSSION: Is this development a good thing for non-profits? Are you going to use these tools to help your non-profit?

Today is Freedom Day!

Every year, the Entrepreneurs Foundation of North Texas hosts Freedom Day, "a powerful day of community service that was developed to honor the lives lost and changed on September 11, 2001."

This year is the 6th annual event, in which hundreds of volunteers from EFNT member companies will join together to support local non-profits in their community. In addition to serving at Catholic Charities, volunteers will be working at three of Central Dallas Ministries' locations. Painting, landscaping and even building a fence, these volunteers are going to make some significant improvements to our community in a day of service that reminds us:

"WE ARE ALL NEIGHBORS, TOGETHER."

Thank you to the Communities Foundation of Texas, the parent of EFNT, for their visionary leadership in bringing a branch of the Entrepreneurs' Foundation to our community.

And, of course, thank you to Pam Gerber, the dynamo behind EFNT and Freedom Day. Her spirit, her work and her life are inspirations to us all.

The Double Bottom Line

Two recent articles reminded me of the concept of the "double bottom line," in which a company looks beyond profits and to other "benefits" produced by its work. Some companies, like Ben & Jerry's, espouse a "triple bottom line" approach that integrates profits with environmental impact as well as social impact.

The articles below are some of the "next steps" along this line of thinking:

• Volunteerism As a Lever to Promote City Revitalization | PhilanthroMedia
  
• Charitable work helps a company's bottom line, too | Chron.com - Houston Chronicle

The latter article makes an excellent point that must also not be forgotten:

But remember, while you are getting the knots worked out of your back, that "cause marketing is not a substitute for personal philanthropy," Hessekiel said.

"Buying a product that makes a contribution does not absolve you from contributing to society with your time and treasures."

Recommended Blog: Larry James' Urban Daily

I have the great privilege of working for Larry James, President and CEO of Central Dallas Ministries. Larry is a great leader, with a strong vision for how to improve our community for the benefit of all. I have benefited tremendously from reading his daily blog, Larry James' Urban Daily, which was recently written about by the Chronicle of Philanthropy:

Dispatches From Urban America - Philanthropy.com

Larry was also recently quoted in the Dallas Morning News, speaking about CDM's commitment to an "organizational minimum wage" of $10 per hour:

Workers see relief in minimum wage hike | Dallas Morning News | News for Dallas, Texas | Business

--------
On a related note, Central Dallas Ministries just opened the ticket office for its September 24, 20007 concert at the Morton H. Meyerson Symphony Center in Downtown Dallas, Texas. This Monday evening event will feature LeAnn Rimes, and all proceeds benefit the programs of Central Dallas Ministries.

For more info, visit:
www.CentralDallasMinistries.org/ANTR

Raising Venture Capital for Philanthropy

I previously wrote about Homeward Bound's IPO -- not an Initial Public Offering, as it is known in the corporate world, but an "Immediate Public Opportunity ... to end homelessness." Up to 200,000 "fundraising shares" have been made available at $32 each.

The first share was famously purchased by Warren Buffet.

They are calling this the "first-ever charity IPO" . . . but this actually builds on efforts previously launched at other organizations, such as College Summit. For example, see this April 2006 story in Fast Company about a "private placement" that raised $15 million from 10 investors to support the organization's growth:

Next: A Nonprofit IPO?

Locally, you can read about the efforts of George Ellis in a recent Philanthropy World Magazine. Ellis helped "introduce venture philanthropy to Dallas." He has been critical in the growth and expansion of the Entrepreneurs Foundation of North Texas, led by one of the strongest Executive Directors in our community (Pam Gerber). Ellis and Gerber are working to help companies "do well by doing good," and their perspective on philanthropy builds directly on the work of the venure capital markets.

In fact, you can hear an interview with Pam Gerber here:

Philanthropy World on MN1 [feeds.mn1.com]

At CDM, we've been discussing how to apply these principles to our work. We've made a great deal of progress over the past year, thanks in great part to the work of Karen Waller, Teresa Hiser and our friends at the Dini Partners (who have been advising us on the development of our ongoing capital campaign).

These concepts are not new for such campaigns. However, we are now thinking beyond the simple construction of the building, and to the significantly expanded operations that we will inherit once the buildings are complete. We find ourselves asking:

• How can we possibly ramp up our revenues by 50% over the coming years simply to handle these expansions? (not including the other organic growth that will occur in our other programs)
  
• We do not currently have an endowment -- is there a role for such a funding vehicle within our organization? How could we build it, while the demand for funds is so tight and the organization continues to grow at 25%+ per year?
  
• Instead of an endowment, is there a way to amass a large amount of "working capital" that we can use to fund our existing operations while refocusing our fundraising energies on the capital campaign?
  
• How much will our social enterprise program be able to contribute through its resale operations and car auction program? Will these efforts even be generating a positive cash flow by the time these expansions arrive?
  
• What do our donors -- particularly donors to our capital campaign -- expect of us in terms of expanding our annual fundraising? Are their own commitments going to grow along with their expectations, or are they simply wanting us to find new sources of support?
  
• How can we move beyond the day-to-day, keep-the-lights-on mentality towards a longer-term, strategic perspective on fundraising?
  
• What would a donor need in order to consider a sacrificial, major gift to be used in an unrestricted way to expand our work?
  
• Is there a way to build a case for significant, multi-year commitments from donors?

We are not sure if this is venture philanthropy or simply effective fundraising. Whatever we call it, we understand that our current practices must change and we must adapt to the changing needs of our high-impact investors.

Super-sized Philanthropy? Brilliant Social Enterprise? Or just good business?

I found it strangely appropriate that the head of Google's Philanthropic arm is named "Dr. Brilliant":
Official Google Blog: Google.org's new director

Google.org is an interesting creation -- its goals would generally be considered charitable in nature, but it was established as a for-profit corporation. More about this can be found here:

Philanthropy Google’s Way: Not the Usual - New York Times

Google.org now has an official blog that's worth paying attention to:
http://blog.google.org/

It will be very interesting to see where this organization goes, and how it will shape philanthropy over the coming years.

There is also an interesting article on Dr. Brilliant here...written in a style reminiscent of Phil Cubeta's Gift Hub:
Dr. Brilliant Vs. the Devil of Ambition:

If baby boomers had their own Faust, he'd be Larry Brilliant, a man who's found himself at the center of almost every defining moment of his generation. His biggest battle: taming the devil of ambition.

---

On a slightly unrelated note... it's interesting that the "sixth-largest charity in the nation today, according to the Chronicle of Philanthropy, is in fact Fidelity's Charitable Gift Fund, which last year sucked in a record $1.3 billion, a 23% increase over 2005, and paid out $1 billion in grants to good causes":

The Gathering's "Charity Made Efficient" article describes how this growth has been driven by allowing Fidelity's clients the ability "with just a couple of keystrokes.. (to) move shares in a bond fund into the house charity and secure a tax write-off."

Companies that Do Well by Doing Good

Last night, I had the tremendous pleasure of joining Pam Gerber of the Entrepreneurs Foundation of North Texas for her “Spirit of Entrepreneurship” Celebration. Honoring philanthropist and business leader Craig Hall, the event was held at EFNT's office at the Communities Foundation of Texas (one of the more beautiful buildings in our city, thanks to the Caruth Family's generosity).

I loved the title of the event: "Building Philanthropy 1 by 1 and 2X4," in honor of Mr. Hall's great record of philanthropy centered on helping individuals and his successful real estate/construction work. The centerpieces were equally brilliant: hardhats and ductwork filled with flowers.

The event was kicked off by Brent Christopher, President and CEO of the Communities Foundation. Pam Gerber then gave out several "NorthStar" awards to an individual and a company that have made a difference in our community: Guy Hoffman (CEO - Metellect Corp.) and TelaDoc Medical Services.


Afterwards, local philanthropist Charles J. Wyly, Jr. introduced the incredibly passionate Roger Staubach for the key note address and introduction of Craig Hall. Mr. Staubach's energy filled the room, and he delighted us all with some on-the-spot jokes about Terry Bradshaw (in response to Mr. Wyly's comment that he had been a Terry Bradshaw fan during Staubach's days at the Dallas Cowboys). He then introduced Craig Hall, whose humility and sincere commitment to "doing well by doing good" was a great joy to witness.

But the real delight of the evening came when Pam Gerber announced the beneficiary of the event: the National Foundation for Teaching Enterpreneurship. Accepting the award was a charming young woman who had won NFTE's local competition in the area of business plans. She will be representing North Texas in the national competition later this year -- and her energy, enthusiasm and sparkling personality showed that she has a great chance at taking the top prize!

I definitely left the night with event envy!

I highly recommend that any corporate leader get involved in EFNT. If you have someone on your board who owns their own business, you should put them in touch with Pam:

The Entrepreneurs Foundation of North Texas (EFNT) promotes and facilitates community involvement and philanthropy for companies. As a designated fund of Communities Foundation of Texas (CFT), EFNT makes it simple for companies to give gack to the community by assisting with organizing volunteer activities for employees, and hosting networking events for senior level management of companies to help grow and strengthen our network of "good corporate citizens."

In establishing a relationship with EFNT, a company networks with like-minded philanthropists while contributing to the greater good of the community. Today there are more than 80 companies in North Texas participating in EFNT, and more than 40 underwriters significantly supporting the effort.

You can learn more about EFNT here:
http://www.efnt.org/

The Cost of Volunteers

Before I get to the article below, let me drop in a shameless plug for our big garage sale here in Dallas:

Second Saturday Sale: June 9!

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This article from the The Chronicle of Philanthropy presents a disturbing topic that is all-too-familiar to those of us in the social services industry...

Well-Meaning Volunteers Strain Katrina Charities
Businesspeople who visit New Orleans for conventions and spend a day helping to rebuild the city often inadvertently strain the finances and resources of local charities, reports The Wall Street Journal.

The volunteers provide welcome help in the recovery from Hurricane Katrina, but they also consume water and lunch and need to be insured and transported to the sites where they help.

Charities say it typically costs $30 to $100 per day per volunteer for such amenities. Beyond costs, charities face other issues, especially when local regulations prevent out-of-town visitors from taking on certain duties.

The crush of volunteers shows no signs of abating: 90 percent of visiting corporations ask about providing help, the article reports, and finding useful work for everyone can be difficult.

The Poverty Business: Will there be no end to our mission?

And recently, from BusinessWeek, confirmation that charity will never be able to compete with systemic forces driving the needs. Say as much as we want about fighting root causes, these weeds run deep and it takes more than food pantries and employment training programs to uproot them.

The Poverty Business: Inside U.S. companies' audacious drive to extract more profits from the nation's working poor

my breath is caught in this wind,
so slow, so staggered --

what love is this that thrives on
nickels and dimes, the castaways of compassion?

there is no charity on this street,
only mild concern for visibly struggling strangers,

a desire to keep the fences firm and tall,
a yearning for no memory of pain.

The Revolution Will Not Be Funded

This is a very challenging article on a topic of great interest to those of us working in the social services side of our sector.... although written on 4-4-2005, it is part of a debate that still rages today:

LiP Magazine's "The Revolution Will Not Be Funded," by Andrea del Moral

This line, in particular, resonates: Foundations and the grants they give are a byproduct of a tax scheme that keeps the rich rich.

The idea is hard to swallow, particularly for fund-raisers. One of the major challenges of my life right now is trying to understand myself as someone who spends his day courting the rich in order to change the lives of the poor. How can I simultaneously solicit funds from foundations while also understanding that they are also involved in deepening the trenches that keep the poor locked into poverty?

Meanwhile, on the other side of the world, the Council on Foundations Announces Philanthropic Partnership Agenda "to grow philanthropy in both rural and urban areas...(by) partnering with government to advance a legislative agenda that promotes the growth of philanthropy.

I am not sure what the answer is. Although we obviously cannot condemn a wealthy person for their desire to donate, we need to realize that the charitable sector only exists to do the work that the government would have to do otherwise (and which most of our wealthy donors would prefer the government not to do).

I do not intend for this blog to become a source of debate on tax policy and government spending. It's purpose is to cite interesting articles related to fundraising ... but we must realize that our work as fundraisers cannot be fully extricated from this debate without losing much of its spirt and soul.